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of <h1>State Sales Tax Law Invalidated for Encroaching on High Court's Jurisdiction.</h1> <h3>Adarsh Bhandar, Aligarh Versus Sales Tax Officer, Aligarh</h3> The High Court of Allahabad declared section 4 of the U.P. Sales Tax (Validation) Act, 1958, invalid as it encroached upon the High Court's jurisdiction ... - Issues:1. Validity of section 4 of the U.P. Sales Tax (Validation) Act, 1958.2. Competency of the State Legislature to legislate in matters covered by Article 226 of the Constitution.3. Interpretation of the powers of the High Court under Article 226 in relation to the Validation Act.The judgment delivered by the High Court of Allahabad addressed an application under section 4 of the U.P. Sales Tax (Validation) Act, 1958, concerning the review of a previous order. The respondents argued that section 4 was ultra vires of the State Legislature, making the application not maintainable. The case originated from a notification issued by the Governor of Uttar Pradesh in 1956, imposing a sales tax on specified goods. Subsequently, a firm challenged the assessment order and demand notice, leading to a writ petition allowed by the Court in May 1957. In response to this, the State Legislature enacted the Validation Act in 1958. Section 4 of the Act allowed for the review of proceedings where a court had set aside an assessment due to lack of jurisdiction. The respondent firm contested the validity of section 4, claiming it impinged on the High Court's jurisdiction under Article 226 of the Constitution.The Court analyzed the provisions of the Validation Act, particularly section 4, which mandated the reopening of proceedings and compelled the Court to reverse its earlier decision. The Court highlighted that the Legislature's power to legislate is subject to the Constitution, including Article 226. The judgment emphasized that the State Legislature cannot enact laws that directly or indirectly affect the powers conferred by Article 226 on the High Court. The Court noted that while the Legislature can legislate on sales tax matters, it cannot override constitutional provisions. The judgment also discussed the argument that the High Court must follow the law laid down by the Legislature, but it clarified that the Legislature cannot pass laws affecting the High Court's powers under Article 226.Furthermore, the Court examined the High Court's power to review orders under Article 226 and the Civil Procedure Code. It concluded that section 4 of the Validation Act, by removing the discretion to refuse a review and mandating a specific outcome, encroached upon the High Court's powers under Article 226. The judgment highlighted that the Act's provisions conflicted with existing laws and were therefore invalid. Ultimately, the Court held that section 4 of the U.P. Sales Tax (Validation) Act, 1958, was invalid concerning the High Court's jurisdiction under Article 226, leading to the dismissal of the application for review.
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